All Forum Posts by: Johnny Quilenderino

Good afternoon BP and fellow investors,

I started getting serious about investing in real estate two years ago and started saving 2k a month. I was in a tough job in the navy and I needed to start thinking about my "exit strategy" from the military. Fast forward to April, I found a triplex and a four plex on sale for 130k. We closed in May and my wife and I thought wow that was easy, so we looked at our other properties that were single family and decided a 1031 for our two single family residences is going to be our next step.

1) 1031 - As of Sep we will complete both the sell of our SFR and the purchase of a 6 plex!

2) We convinced our tenant to buy our second SFR and our second 1031 in one year will start as of Nov. We have eyed two 4 plexes or a deal on a another 4 and 3 plex package.

3) We have orders to move to DC next year and I still have VA loan option that I can put into play. Commence the house hack until my wife moves up there a year later.

4) Once my wife moves up there a year later she has her VA Loan to use and we will buy a property for us to stay in.

5) Flipping will start next month. We have our 6 months in of savings and get approximately 4k in NOI and feel we are financially prepared to take a step into that direction. Flip three buy one until I retire from the military.

Our goal is 20 units cash flowing by June 2018, and working on our second flip by then. 

It all starts with the commitment to save and "DO SOMETHING" then do it again.

Very respectfully,

J Q

Good evening BP,

JQ here and wondering if people have had success using BP marketplace for selling rentals, flips, or properties in general?

I have a few ideas of how I would market my products but I was wondering if anyone has a few lessons learned?

This is obviously way in advance, and I have not made myself a pro yet because I am doing my due diligence on marketing, focusing in on my market, and socking away a few more dollars before I make the big leap into the flip game. 

I see a lot of deals on the marketplace, but I am just wondering how many were sold specifically from BP viewers and bloggers.

Cheers,

Johnny

Good morning BP,

Looking for advice on flipping, in Hampton Roads, and seeing if anyone has time for coffee or about five minutes to chat.

I do have equity coming in (4 rentals), I have several investors, I have a contractor, I have the down payment, and I have three lenders waiting for me to pull the trigger. I do not have analysis paralysis, I am waiting until my final rental closes on a 6 plex. I do not need the flipping business but I would like to expand my capital to expand my rental business. 

Anyone local that does not mind a newbie in the business picking their brain over free coffee or lunch; let's talk!

Cheers and have a great weekend!

Johnny

I am working with a couple banks. I am starting my flip business in two months. Add me and all of us can sit down over coffee! I have properties in Suffolk, Norfolk and Vriginia Beach, hoping to expand up to Newport News. 

Update: I still have the 7.99 percent lender on the ready.

I have a local bank looking at the numbers and seeing if they can fund me. I also have a broker doing the same.

As for the properties, they have either been mis-managed or not been tracking the income and expenses still working with a realtor to get the data if possible. If not I might be going in blind until I get a letter of intent from the lender.

Good morning BP and happy 4th weekend.

Quick update:

Two lenders backed out: 1) Properties in the same city but not zipcode. 2) Did not like the condition of the duplexes even though they are cash-flowing.

Four other lenders are still in the testing the waters and checking my data tape.

One lender gave me a LOI but it was at 7.99 percent, and I had to sign in three days. I was not ready to sign it so I analyzed the paperwork, wrote back a nice response stating I was not going to be pressured. I have not heard from him since.

So, do I think this is going to be funded. Absolutely, without 18k in broker fees, absolutely, do I need to be patient. Yes, and keep up the communications with the lenders that are diligently running our numbers. 

Have a great week!!

Team BP,

So after being on the phone for a couple of hours today here are my updated stats for loans:

For my blanket loans currently pending rent roll

6% apr. with a 10 year term and a 30 year am. Requires an LLC.

6-8% apr with full 30 year term and am. Does not require and LLC

6-8% apr with 5 year term and 25 am Requires an LLC

Now I am just waiting on rent rolls/leases/vacancy rates to come in so i can finish the package to my possible lenders. 

Cheers,

Johnny

Team BP,

So I have had two phone calls and 4 offers. Definitely getting closer to funding my project. Next week is going to be sorting out and sending in loan applications. 

So far the interest rates were 6, and 10 percent for my yes options.

Have a great week.

Johnny

@Darrin Carey Yes, thank you for the clarification. 

I also have a 1031 tax exchange for the down payment, if I have to execute three loans under one lender, as long as it meets the flavor of the 1031 and I do not take out money, I might be ok. Either way, great suggestion, I will be on the phone talking to lenders all next week to see who wants to play ball. If the give me a great offer, I have another 1031in the works for next year. 

Thank you for reading! Have a great rest of your weekend!

Currently, I have moved away from traditional banks and I am working with private money/hard money lenders. My first yes was a hard money lender. I must say I was floored by the sticker shock of the offer but when you have money you can do those types of loans. It was funny, because my first yes would have required me to be back in this spot in a year, maybe with less money.

I am just not there yet. If this was ten years down the road, I would buy the whole town! 5 colleges with-in 30 miles and right off a major interstate.

Lessons I have learned since starting this process:

1) Have all your files ready to go, (transmittable)

a) Taxes (last two years)

b) Profit and loss sheet

c) leases (I have nine leases ten pages each)

d) W-2s

e) Projected DSCR and how you got there.

2) There are many definitions to a portfolio loan, be sure to see if what you are asking for is one.

- two banks said yes they do "portfolio" loans and then turned around and said that is a blanket loan.

- blanket loans for residential purposes will cause you to email private money lenders and or banks you have never heard of in you life. Do not be scared, BE AGGRESSIVE!!!

3) Keep looking for backup lenders, just because one lender said yes, initially, that does not mean the underwriter is going to love your deal and you are "safe."

4) The application process can be a bear! If you want it, you got to do the HOMEWORK!!!! I have sat down and applied to 8 different lenders, filling out my own 1003, and enjoying my ice coffee while I type away.

5) Keep track of who you contacted, and check your spam email. All of my, "your application has been accepted" emails went to spam.

6) Open up a dropbox account for lender or ask them to do the same for your account. 

I will update this as the story unfolds. If I can get a solid lender that holds true to the DSCR only and my profit and loss sheet. I have just opened up my business to another stream of revenue. My realtors are going to love me too!

Cheers,

Johnny